National

Small business hopeful for 2013: MYOB

by:Colin Brinsden, AAP Economics Correspondent

From:
AAP

December 11, 201212:08AM

SMALL business confidence may have reached a turning point after some difficult times in the past couple of years.

An examination by software provider MYOB of its business monitor series from October 2010 to July 2012 points to a stabilisation in the first half of 2012 and an inkling that businesses feel more optimism going into 2013.

The proportion of small and medium sized enterprises (SMEs) expecting the economy to improve over the next 12 months had steadied at 19 per cent in March and June this year, after being in sharp decline from 47 per cent since October 2010.

"Our research indicates the small and medium business sector has reached a turning point, with economic confidence and revenue expectations steady over the second half of the previous financial year," MYOB chief Tim Reed said in a statement on Tuesday.

"With almost three in every four expecting either stable or rising revenue this financial year we could see a concurrent rise in economic confidence into 2013."

Mr Reed also said federal government changes to tax-free thresholds from July should help boost business performance.

"The tax-free threshold increase for individuals to $18,200 may see more part time workers join and stay in the workforce, allowing operators to draw from a larger group of skilled candidates when employing new staff," he said.

"Another positive contributor is the small business instant tax write-off increase to $6,500, which I encourage taking advantage of to invest in equipment that improves productivity and cash flow."

Mr Reed said 45 per cent of SMEs also viewed the tax loss carry-back scheme as positive.

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